You can tie it either way; the choice merely dictates which set of four inputs are still accessible.About the third select input, should that one also be connected to ground in that case?
If you go that route, you still have to use additional gates to get the right logic from the other two inputs to the four active inputs of the MUX. Why do that, when you can use all three of the select inputs and use a single NOT gate to get whatever logic you need from the remaining input to each of the eight active inputs?